Gold and Silver Industry & Investing News
Today’s gold and silver market news, curated from the best of GoldSilver's team and around the web. Everything precious metals investors need to know including updates on big price swings, macro analysis, and breaking stories. Check back often or subscribe to get the highlights in your inbox. Monitor live spot prices on our charts page.
Subscribe
TOP NEWSSILVER ALERT: Could This Mexican Law Change Cause a Supply Crunch?
In this enlightening video, join our host Mike Maloney and esteemed guest Lobo Tiggre from Independent Speculator.com
What Creates The 'Perfect Storm' For Silver?
In this insightful video, we explore the complex relationship between silver and gold markets, highlighted by historical spikes in silver prices.
READ MOREUBS Warns of Potential 6.5% Fed Rate Hike Amid Enduring Inflation
UBS Group AG strategists suggest there is a growing risk that the Federal Reserve may increase interest rates to as high as 6.5% next year, due to persistent strong U.S. economic growth and sticky inflation. Initially predicting two rate cuts this year, UBS now considers a scenario where inflation does not meet the Fed's target, potentially leading to resumed rate hikes. This shift could trigger a significant selloff in both the bond and stock markets. Recent U.S. data indicating economic resilience has led markets to adjust expectations, reducing bets on policy easing and preparing for the possibility of increased rates if inflation remains above 2.5%.
READ MOREConsumer Spending Defies Inflation Fears, Jumps 0.7% in March
In March, U.S. retail sales rose by 0.7%, surpassing expectations of a 0.3% increase despite concurrent rising inflation, according to the Commerce Department. This growth, although slower than February's revised 0.9% rise, indicates that consumer spending remained robust. The consumer price index, as reported by the Labor Department, climbed 0.4% for the month, aligning with an annual inflation rate of 3.5%. However, the 4% annual increase in retail sales demonstrates that consumer spending outpaced inflation, suggesting a resilient economic demand amidst escalating prices.
READ MORESafe-Haven Demand Drives Gold Closer to Peak Amid Middle East Unrest
As tensions escalate in the Middle East following Iran's extensive drone and missile attacks on Israel, gold prices are approaching new record highs due to increased safe-haven demand. On Monday, gold prices rose by 1.7%, nearing last week’s record of over $2,400 per ounce, though the price later settled lower as investors adjusted their positions amidst overheated rally indicators. The ongoing geopolitical uncertainties in the Middle East and Ukraine further enhance gold's appeal as a safe investment during times of crisis. Chris Weston of Pepperstone Group emphasizes that the geopolitical tensions alone are a compelling reason to invest in gold, anticipating a continued upward trajectory in its price.
READ MORECosmic Flash Leaves Scientists Puzzled Over Origin of Gold and Platinum
In October 2022, astronomers using the Gemini South telescope in Chile observed the brightest cosmic flash ever recorded, dubbed the "Brightest Of All Time" or the BOAT. Further analysis by the Webb Space Telescope identified the BOAT as a supernova, a massive star's explosive demise. This research, published in Nature Astronomy, sought to find traces of heavy elements like gold and platinum typically thought to be produced by such cosmic events. However, none were detected, deepening the mystery of how these precious metals originate. The study suggests that while some heavy elements come from neutron star mergers, this process alone cannot account for their abundance in the universe, as these mergers are infrequent and occur over vast time scales.
READ MOREBrooklyn Pawnshop Sees Surge in Gold Sales Amid Price Rally
Amid gold's remarkable rally, with prices surpassing $2,400 an ounce, Brooklyn's King Gold & Pawn has been inundated with customers eager to sell their gold. The motivations vary: some are capitalizing on the high prices, while others, pressed by financial needs, are selling to afford essentials like rent and groceries. Gene Furman, the shop owner, notes an unprecedented tripling in transactions since late February, as individuals treat their gold assets as an emergency fund. Branden Sabino, an IT specialist, exemplifies this trend, selling his gold jewelry to manage rising living costs without any savings to fall back on.
READ MOREGeopolitical Strains Fail to Boost Oil Prices as Markets React Cautiously
Crude oil prices experienced a modest decline in reaction to the recent Iranian attack on Israel. West Texas Intermediate (WTI) crude for May delivery fell by 1%, closing at $84.83 per barrel, while Brent crude, the global benchmark, dropped 1.2% to $89.41 per barrel after briefly exceeding $90. Prices for May gasoline and heating oil also saw reductions of 1.2% and 1.6%, respectively. Natural gas prices decreased by 2.4%. The market's subdued response reflects investors' expectations that the attack, which was largely neutralized by Israel's defenses, would not escalate into a broader regional conflict.
READ MOREChina Drives Silver to New Heights with Booming Solar Sector
Silver demand has been significantly driven by the growth in solar energy installations, particularly in photovoltaic (PV) cells. Last year, the demand for silver in PV cells reached a new high of 190 million ounces, up from 100 million in 2020, now accounting for about 30% of industrial silver demand. This increase is largely attributed to the rapid expansion of PV manufacturing and installation in China, which constitutes approximately 85% of the global manufacturing capacity. In 2023, China's new solar installations nearly matched the total global installations of the previous year. Looking ahead, it's projected that solar silver demand could surpass 200 million ounces in 2024.
READ MOREZeroHedge: One Bank [Finally] Says Quiet Part Out Loud On Gold Manipulation
In the latest "Greed & Fear" report by Chris Wood of Jefferies, a prominent global capital markets firm, a significant portion is dedicated to discussing gold, touching on allegations of market manipulation. Wood, who is known for his expertise on various markets, particularly in Asia, and respected for his macroeconomic analyses, cautiously approaches the topic of gold price manipulation, suggesting it poses the greatest risk to the current gold rally. He also notes a recent significant transaction where China reportedly purchased oil from Russia using gold, underlining his credibility and depth of understanding in these complex market dynamics.
READ MOREGold Price Predictions Skyrocket: Wall Street Banks See Record Highs
Major Wall Street banks have significantly raised their price targets for gold. This upward revision is influenced by increased safe-haven demand amid rising geopolitical tensions in the Middle East, although it seemingly contradicts the current Federal Reserve policy and trends in gold ETF outflows. The puzzling market dynamics have led to speculative forecasts, with Goldman Sachs setting a target of $2,700, Bank of America $3,000, and UBS an ambitious $4,000 per ounce.
READ MOREHere's what JP Morgan, Citi, and Bank of America are Predicting for the Gold Price
Gold prices have climbed for four consecutive weeks, now surpassing $2,410 per ounce. In light of this sustained increase, several analysts have revised their forecasts, now projecting some incredibly bullish gold forecasts.
READ MOREGold and Silver Alert: Market Turmoil May Unlock Historic Buying Opportunity
Following the recent attacks by Iran on Israel, significant market volatility is expected, as described by Peter Spina of GoldSeek.com. The heightened geopolitical tensions may lead to a "liquidity event" in financial markets, potentially causing a selloff in stocks that could spill over to precious metals. This scenario could present a unique buying opportunity for investors in gold and silver. The underlying fear and the addition of a 'fear-war premium' to gold prices suggest that precious metals, along with oil, could see strong market openings and sustained buying interest, barring any sudden changes in the current situation.
READ MOREGold Prices Ease After Record Surge Amid Middle East Strife
After soaring to an unprecedented high, gold prices moderated on Monday, reflecting a cautious recalibration in the market following a spike driven by escalating Middle East conflicts. Spot gold inched up slightly by 0.3% to $2,349.67 per ounce, pulling back from Friday's record-setting peak of $2,431.29, catalyzed by anticipations of an Iranian counterstrike. Meanwhile, U.S. gold futures mirrored this tepid sentiment with a slight decrease of 0.3%, settling at $2,366.10. The heightened tensions saw Iran executing a bold aerial assault on Israel, using drones and missiles as retribution for an alleged Israeli attack on its consulate. This geopolitical turmoil underscores gold's status as a refuge for investors during times of international uncertainty.
READ MOREIran’s Strike Against Israel: Gold Nears Record High
Gold rose last week as geopolitical tensions flared with Iran's attack on Israel, hinting at a volatile climb before slipping back below last week's record highs. The conflict's escalation initially pushed investors towards the safety of gold, driving prices up 1.2% as they braced for further unrest. However, despite the significant increase in hostilities, the surge was short-lived. Technical signals suggested the rally was overstretched, prompting a round of sell-offs that pulled gold prices down from their peak. Although the precious metal breached the $2,400 mark, it settled lower as the market digested the potential impacts of ongoing tensions in the Middle East. Investors remain on edge, watching closely for any further developments that might reignite the rush to this traditional safe haven.
READ MOREDollar Rises as Geopolitical Tensions Mount; Oil Prices Climb Amid Middle East Concerns
The U.S. dollar strengthened and oil prices rose amid escalating geopolitical tensions and uncertainties around interest rate strategies between the U.S. and Europe. On Wall Street, major indices fell, influenced by disappointing earnings from leading banks as the first-quarter earnings season began. Additionally, global stock markets were affected, with the MSCI's global index dropping 1.23%. Concerns about potential retaliation from Iran following an airstrike on its embassy in Damascus, which it attributed to Israel, also weighed heavily on market sentiments.
READ MOREGold and Silver Surge as Investors Eye Iran-Israel Tensions
Gold has recently reached a new all-time high, surpassing the $2,400 mark, influenced by ongoing geopolitical tensions and the anticipation of U.S. interest rate cuts. On Friday, gold futures for June delivery climbed 1.7%, reaching $2,414 per ounce, closely following a record close at $2,372.70 on Thursday. This marks a significant year-to-date increase of over 14%. Concurrently, silver also saw a notable rise, increasing by 3.3% to $29.18 an ounce. The upward trend in precious metals, which began in early March, is largely driven by market reactions to potential threats of conflict between Iran and Israel, as well as mixed economic data from the U.S. that could influence Federal Reserve policies.
READ MORESilver Hits Three-Year Peak, Gold at Record High
Silver prices have recently surged, overtaking the gains made by gold this year, with the metal reaching its highest price in nearly three years. Despite a general downturn in both metals during part of Thursday's trading session, silver’s recovered nicely on Friday peaking at $29.50/oz. Gold also saw significant gains, with futures climbing by to a record high of $2,417 an ounce on Comex, marking a 14.5% increase year to date. This upward trend in precious metals comes despite the pressures of rising Treasury yields and a strong U.S. dollar, which have traditionally acted as obstacles to such gains.
READ MORERise in Hong Kong Jewelry Market, Exports Up 6% in Early 2024
In the first two months of 2024, Hong Kong experienced a modest increase in jewelry exports and retail sales, signaling a steady recovery in business and consumer sentiment. According to the Census and Statistics Department, jewelry shipments rose by 6% year-over-year to approximately US$4.4 billion. Retail sales of jewelry, watches, clocks, and valuable gifts also increased by 8.8% to around US$1.3 billion during the same period, despite a slight dip in February's sales. This growth is attributed to improved exports to China and the US, enhanced household incomes, and government efforts to boost consumer spending, although changing consumption patterns continue to challenge the sector.
READ MOREGold Heads for Fourth Straight Weekly Gain
Gold prices are on track for their fourth consecutive weekly gain, reaching new record highs due to escalating Middle East tensions and economic uncertainties in China. Spot gold increased by 1% to $2,397.84 per ounce, peaking at $2,400.35, with a nearly 3% rise over the week. U.S. gold futures also rose by 1.8% to $2,414.80. Chris Gaffney, president of world markets at EverBank, attributes the surge in gold prices primarily to the ongoing geopolitical tensions in the Middle East, emphasizing that the positive drivers for gold currently outweigh any negatives.
READ MOREGold Hits Record $2,400 as Middle East Tensions Heighten
Gold prices soared to a new record high, surpassing $2,400 per ounce, amid escalating Middle East tensions and fears of retaliation following an Israeli strike in Syria. The surge in demand for gold, seen as a more reliable hedge against geopolitical risks than government bonds, was further fueled by U.S. inflation concerns, according to Mohamed A. El-Erian. Additionally, gold's rise has been supported by increased purchases by central banks, including China, and speculation about potential Federal Reserve rate cuts in 2024, despite recent robust U.S. inflation data complicating the economic forecast.
READ MORE